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| USU > SEC Filings for USU > Form 8-K on 18-May-2009 | All Recent SEC Filings |
18-May-2009
Entry into a Material Definitive Agreement
On May 15, 2009, USEC Inc. ("USEC") and its subsidiary United States Enrichment Corporation entered into a Settlement Agreement (the "Settlement Agreement") with Eurodif S.A. and its affiliates, AREVA NC and AREVA NC Inc. The Settlement Agreement settled several pending appeals and administrative proceedings arising from an antidumping order imposed on imports of French low enriched uranium ("LEU") by the U.S. Department of Commerce ("DOC") in 2002.
Under the terms of the Settlement Agreement, the parties will immediately withdraw or request dismissal of all pending appeals and DOC proceedings. This is expected to bring to an end all pending litigation and administrative proceedings regarding DOC's 2002 antidumping duty order, which is now expected to remain in place until at least the next five-year "sunset" review in 2012. Under the terms of the Settlement Agreement, USEC is expected to realize approximately $70 million (before taxes) from estimated duties deposited by Eurodif S.A. or its affiliates. The funds are expected to be received no earlier than the fourth quarter of 2009 from a U.S. government program implementing federal legislation, the Continued Dumping and Subsidy Offset Act (CDSOA) of 2000, commonly known as the Byrd Amendment. The Byrd Amendment was repealed with regard to merchandise entered into the United States after October 1, 2007, but domestic producers affected by the dumping of foreign merchandise are permitted by U.S. law to seek recoveries from antidumping duties collected on covered entries that were made prior to October 2007. The Settlement Agreement also provides for a purchase of separative work units (SWU) by Eurodif in 2009 and 2010 from USEC.
Separate from the Settlement Agreement, USEC has an inventory optimization arrangement with AREVA NP Inc., an affiliate of Eurodif S.A., AREVA NC and AREVA NC Inc. under which USEC delivers LEU to its customers at the AREVA NP Inc. fabrication plant in Richland, Washington. USEC has similar arrangements in place with two other fabricators with plants in the United States.
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